Apple's new payment product, Apple Pay, was hailed by JPMorgan Chase's Chief Financial Officer Marianne Lake at a conference Tuesday in New York, only a few minutes after it was unveiled across the country in Cupertino, California.
When asked by an audience member for her response on Apple Pay, Lake laughed and said, "We are very excited about Apple Pay; Chase customers will be able to participate in that."
The Apple Pay service will enable iPhone 6 and 6 Plus users to pay for items in stores or online with their phones, but still using their credit cards, meaning that issuers like Chase could benefit from the new product. Lake said that Chase would be releasing its own, but even so, this could still be a small step by Apple into a financial services industry dominated by older, larger companies.
"We think it will lead to significantly improved customer service," Lake said, noting that Apple Pay will be fully e-commerce-enabled. While Chase is developing its own wallet service, Lake said, she did not portray Apple Pay as a threat to its business, saying that Chase would always be "on top of wallet."
In a statement released by Apple, JPMorgan Chairman and Chief Executive Officer Jamie Dimon said, "JPMorgan Chase has been pleased to collaborate on Apple Pay to create a better, faster and safer payments system, which puts the customer first, creating an exceptional customer experience for consumers and merchants. Everyone wins."
Chase, which is the largest credit card issuer in the U.S. based on outstanding loans, was one of 11 credit card issuer partners listed during the event as participating in Apple Pay. "We're delighted to be able to participate. It's the future, so it's great," Lake said.
While the announcement today is not Apple getting in the financial services business directly — it's building a way for customers to use their credit cards — banking executives have fretted about whether technology companies will move in on their existing business. At an investor conference in February, Dimon said that when he travels to Silicon Valley and meets with technology executives, "they all want to eat our lunch, I mean, every single one of them."
This piece has been updated with a statement from Jamie Dimon.
Matthew Zeitlin is a business reporter for BuzzFeed News and is based in New York. Zeitlin reports on Wall Street and big banks.
Contact Matthew Zeitlin at email@example.com.
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